Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environment
• Social
• Governance

Environmental Achievements

• 9% reduction in energy consumption
• 11% reduction in specific energy consumption
• 44% increase in renewable energy consumption
• 6% reduction in water consumption
• 89% reduction in LTIFR
• 100% reduction in fatalities

Social Achievements

• Launched ‘Hands Together’ hand sanitizers during COVID-19
• Implemented various initiatives for employee wellness during COVID-19
• Attrition reduced to 9% from 11.8% in the previous year
• Implemented Job evaluation to harmonise roles
• Launched new Leave Policy and Performance Management Policy

Governance Achievements

• Implemented Appointment and Remuneration Policy
• Implemented Code of Conduct for Directors and Senior Management
• Implemented Code of Conduct for Prevention of Insider Trading
• Implemented Policy for Determining Materiality of Events and Information
• Implemented Whistle Blower Policy
• Implemented Policy for Determining Material Subsidiaries
• Implemented Policy on Materiality of Related Party Transactions and Dealing with Related Party Transactions
• Implemented Dividend Distribution Policy
• Implemented Policy for Preservation of Documents
• Implemented Archival Policy
• Implemented Risk Management Policy
• Implemented Policy on Board Diversity
• Implemented Succession Plan for Board Members and Senior Management
• Implemented Performance Evaluation Policy
• Implemented Code of Conduct for Employees
• Implemented Policy for Prevention of Sexual Harassment

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting domestic sales and global logistics
• Global disruptions in sea and air logistics
• Rising raw material, utility, and logistic costs
• Competition from Chinese manufacturers
• Dependence on certain key products and customers
• Foreign currency and interest rate exposures
• Capacity planning and optimization
• Manufacturing operations compliance
• R&D effectiveness and product pipeline
• Supply chain interruptions
• Acquiring and retaining talent
• Compliance and regulatory changes
• Environment, health, and safety (EHS) requirements
• Information technology (IT) threats
• Changes in tax legislation
• Labor union issues
• Managing impact of black swan events

Mitigation Strategies

• Minimized COVID-19 impact through safety measures and timely deliveries
• Developed and commercialized six new products
• Passed on increased raw material costs to customers
• Increased penetration in other geographies and strengthened customer relationships
• Launched new products and diversified product mix
• Used derivative financial instruments and hedging techniques
• Optimized plant capacities and utilization
• Implemented Business Excellence program and Six Sigma initiatives
• Developed alternative sourcing strategies
• Implemented Sales & Operations Planning (S&OP) meetings
• Implemented digital projects to improve supply chain visibility
• Implemented end-to-end digitization across core HR processes
• Implemented a compliance management system
• Enhanced EHS initiatives through employee consultation and participation
• Implemented ISO 27001 certified IT processes and NIST Cyber Security framework
• Monitored tax liabilities and legislative changes
• Maintained cordial relations with employees
• Implemented COVID-19 preventive measures and support programs

Supply Chain Management

Supplier Audits: 10% coverage/year

Responsible Procurement

• Green Supply Chain Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 22000, FSSC 22000, FAMI-QS, cGMP, HALAL, KOSHER, ISO 17025, RC 14001, ISO 50001, ISO 27001, NABL, WHO GMP

Third-party Assurance: Ernst & Young Associates LLP

Sustainable Products & Innovation

• Pyridine manufactured using alcohol from agricultural feedstock
• Bio-based Acetaldehyde
• Hands Together hand sanitizers

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Waste Management
• Human Rights
• Community
• Occupational Health and Safety
• Training and development
• Employee attrition
• Responsible Supply Chain
• Compliance

Environmental Achievements

• Reduced 19% of specific water consumption and 11% of specific GHG emissions with respect to FY 2019 baselines
• 35% of water recycled and reused in-house
• Estimated saving of 797 TJ equivalent of energy and reduction of 75016 tCO2 through implementation of 42 energy saving projects

Social Achievements

• Digitalisation of over 150 schools in India
• Supported over 2,300 families to achieve sustainable livelihood
• 143896 man-hours were spent on safety training during this year

Governance Achievements

• Revenue growth - 42% on YoY basis, driven by growth across business segments.
• EBITDA at Rs 863 crore, growth by 38% on account of strong performance of all three product segments.
• PAT growth - 51% YoY driven by growth in EBITDA, aided by reduction in finance cost on account of reduction in debt and optimisation of interest rates.

Climate Goals & Targets

Environmental Challenges

• Failure to secure, renew or maintain required permits or approvals or inability to ensure compliances to EHS requirements
• Constantly increasing regulatory obligations, new requirements as well as globalisation
• ESG performance is now must for investors/customers
• Risk of failure to develop products which are compliant with accepted standards documentation
• Dependence on certain key products and customers for a significant portion of its total revenue, cash flows and earnings
• Significant movement in exchange rates over several years
• Company’s production capacity may not be aligned with market demand
• Due to the nature of business, the Company needs to comply with multiple domestic and international regulations across its manufacturing units
• Actions by governments to increase tax rates or to impose additional taxes
• If the Company experiences labour union issues, the Company’s production capacity and overall profitability could be adversely affected
• Enhanced vigilance and activism by NGOs and motivated individuals against environmental issues around the industrial operations
• Occurrence of any unforeseen threats to Information Technology systems
• Stiff competition in both domestic and international markets
• Failure of RDT to provide innovative and cost-effective products with desirable quality
• Increase in global temperature compared to pre-industrialisation time
• Non availability/ sharp rises in prices of energy/coal
• Logistical challenges are also there due to major strike or disruption in the movement of raw material or finished goods at sea ports
• An organisation’s success is largely dependent on the quality and performance of its people, making HR a risk-prone function.

Mitigation Strategies

• Over the years, EHS excellence has been extensively promoted as a part of Company’s culture.
• Compliance Management System is in place to ensure adherence to all applicable laws and regulations.
• The Company is improving capabilities and competencies of our personnel on ESG by imparting various trainings.
• The RDT team has taken a proactive approach to introduce new products in Pyridine chemistry and also in non-Pyridine chemistry by deploying cost effective and differentiated technological platforms and capabilities.
• The Company continues to launch new products with the help of RDT resources with forward and backward integration, which helps in developing new cost-effective processes/ products to meet customer demand and build market share.
• The Company’s overall foreign currency risk exposure is naturally hedged.
• The Company has robust processes to continuously monitor plant capacities and utilisation
• Transforming manufacturing for Operational Excellence and Sustainability with zero tolerance to any non-compliance’ is Company’s core focus.
• The Company has a dedicated team of tax professionals whose primary task is to ensure that the tax liabilities are correctly computed and any revision in the tax legislation is monitored continuously.
• This may be resolved amicably through a voluntary negotiation and mediation process.
• Engagement with stakeholders through Corporate Social Responsibility (CSR).
• The Company’s IT processes are ISO 27001 certified and it follows National Institute of Standards and Technology (NIST) cyber security framework
• Increasing penetration in other geographical regions and strengthening relationship with existing strategic customers
• The Company has developed multiple vendors for sourcing both domestic coal as well imported coal.
• The Company has already invested in digital projects specifically aimed at improving visibility of its finished goods as well as inputs at all stages of Supply Chain.
• The Company has established strategic talent & succession management process and identify critical roles across the organisation.
• The Company is focusing on utilising renewable energy like solar, wind etc.

Supply Chain Management

Supplier Audits: 8 existing suppliers audited, 5 new suppliers audited

Responsible Procurement

• Supplier’s Code of Conduct which mandates ethical business conduct
• eJ-Buy- an e-procurement tool that enables paperless buying

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme events, changes in precipitation patterns, extreme variability in weather patterns and rising sea levels

Transition Risks

• Changes in global, regional and national level policies and regulations on climate change and its mitigation

Opportunities

• Renewable energy like solar, wind and so on
• Energy efficiency, resource efficiency, green chemistry, low-carbon technologies, circular economy and use of biomass as a fuel

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option

Certifications: ISO 14001, ISO 45001, ISO 27001, FAMI-QS, FSSC 22000

Third-party Assurance: Ernst & Young Associates LLP

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 1 (No poverty)
• Goal 3 (Good health and well-being)
• Goal 4 (Quality education)

The Company’s goals and targets are aligned with the Sustainable Development Goals (SDGs), Intended Nationally Determined Contributions (INDCs) and other program under the Niti Aayog.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Joint winner for the Excellence in Health Safety and Environment in Chemicals

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Waste Management
• Human Rights
• Community
• Occupational Health and Safety
• Training and development
• Employee attrition
• Compliance
• Customer Satisfaction
• Responsible Supply Chain

Environmental Achievements

• Increased the percentage of renewable energy in the overall energy mix to 7.6%
• Reduced 28,386 tCO2e of greenhouse gas (GHG) emissions through 28 energy-saving projects, saving ₹ 342 million.
• 33% of water was Recycled and Reused

Social Achievements

• Achieved the target of increasing the percentage of women in the workforce to 4.7%
• 56823 patients consulted through JubiCare Tele-clinic
• Supported 3762 families to achieve sustainable livelihood

Governance Achievements

• Attained a GOLD Sustainability rating (score 68) in EcoVadis, placing among the top 7% of global pharmaceutical companies.
• Received a 'B' score band from CDP for 'Climate Change' and 'Water Security'.

Climate Goals & Targets

Environmental Challenges

• Constantly increasing regulatory obligations and globalisation.
• Changes in regulations, statutes, legal interpretation or policies.
• Failure to secure, renew or maintain required permits or approvals.
• Climate change risks (increased severity of extreme events, changes in precipitation patterns, etc.).
• Risk of failure to meet benchmarked ESG performance.
• Non-availability/sharp rises in prices of energy/coal.
• Consequences of trade disputes, restrictions, epidemics, pandemics, etc.
• Acquiring and retaining skilled talent.
• Cyber threats.
• Loss of market & competitiveness.
• Labour union issues.
• Enhanced vigilance and activism by NGOs.
• Failure of RDT to provide innovative and cost-effective products.
• Dependence on certain key products and customers.
• Foreign currency and interest rate exposures.
• Capacity planning and optimization.
• Relative failure to adopt digital technologies.
• Manufacturing operations compliance.
• Changes in tax legislation.

Mitigation Strategies

• Compliance Management System.
• Investments in renewable energy, energy efficiency, green chemistry, etc.
• Improving capabilities and competencies of personnel on ESG.
• Developing multiple vendors for sourcing.
• Strategic talent & succession management process.
• ISO 27001 certified IT processes, NIST Cyber Security framework.
• Long-term contracts with volume commitments, cost improvement initiatives.
• Voluntary negotiation and mediation process with labour unions.
• Engagement with local stakeholders through CSR.
• Strong pipeline of new products under development.
• Overall foreign currency risk exposure is naturally hedged.
• Robust processes to continuously monitor plant capacities and utilization.
• Automation platforms, Contract Lifecycle Management Tool, Manufacturing Digitalisation.
• World-class manufacturing processes, third-party certifications.
• Dedicated team of tax professionals.

Supply Chain Management

Supplier Audits: Annual supplier audits conducted to cover critical vendors at least once in three years.

Responsible Procurement

• eJ-Buy (e-procurement tool)
• Supplier code of conduct mandating ethical business conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme events
• Changes in precipitation patterns
• Extreme variability in weather patterns
• Rising sea levels

Transition Risks

• Changes in regulations, statutes, legal interpretation or policies

Opportunities

• Utilizing renewable energy like solar, wind, biomass etc.
• Energy efficiency, resource efficiency, green chemistry, low carbon technologies, circular economy and use of biomass as a fuel

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, RC 14001, ISO 50001, ISO 45001, FAMI-QS, GMP, HALAL, KOSHER, FSSC 22000, ISO/IEO 17025-NABL, ISO 27001

Third-party Assurance: Ernst & Young Associates LLP

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Various CSR initiatives aligned with SDGs

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• National OHS Award 2022 (Nira site)

Environmental Metrics

ESG Focus Areas

• Green Energy
• Sustainability
• Carbon Footprint Reduction

Environmental Achievements

• Partnered with O2 Renewable Energy to increase the use of green energy from solar and wind sources at Gajraula and Savli facilities.
• Initiatives launched at Nira, Maharashtra facility to increase renewable energy use.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Dependence on non-renewable energy sources.

Mitigation Strategies

• Partnership with O2 Renewable to access renewable energy through a captive arrangement.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: S&P DJSI, TFS, Ecovadis, CDP Climate Change program

Certifications: Responsible Care

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed